Legal service for foreign clients
Bankruptcy & Business Rehabilitation in Thailand
Stop the bleeding, or collect inside a process with a clear order of priority.
Quick answer
When liabilities overwhelm a business there are two main routes: a bankruptcy petition that pools and distributes assets to creditors, or a rehabilitation petition that stays debts and builds a new payment plan under the Central Bankruptcy Court. Debtors gain the automatic stay; creditors must lodge their claim within the two-month window after publication. We act for either side, never both in the same case.
From THB 60,000 — From 60k for the petition · plan work priced by debt size · Rehabilitation petition 1–3 months to acceptance; the whole process 1–5 years
Who this is for
- Companies short on liquidity whose business still works if debt is restructured
- Trade creditors whose debtor entered rehabilitation
- Guarantors pursued after the principal debtor's bankruptcy
- Directors needing to know their personal exposure before it escalates
- Buyers eyeing a business or assets out of the bankruptcy process
What you receive
- Assessment of the debt position and the choice between bankruptcy, rehabilitation, or out-of-court settlement
- Filing the petition at the Central Bankruptcy Court with the accounting exhibits
- Drafting or opposing the rehabilitation plan and attending creditors' meetings
- Lodging the debt claim on time with proof of the underlying obligation
- Reviewing acts open to avoidance, such as preferential payments made before insolvency
- Protective strategy for director and guarantor liability
Documents to prepare
- Three years of financial statements plus the latest trial balance
- Creditor and debtor ledgers with balances and the underlying documents
- Loan agreements, guarantees, and every security document
- Asset schedule and all registered encumbrances
- Relevant board or shareholder resolutions
How it works
5-step process
- 1
Diagnose which route fits
Test the minimum debt threshold, ability to pay, and the odds a plan passes the creditors' vote.
- 2
Assemble auditable financials
Our accounting team reconciles every figure before filing.
- 3
File and obtain the automatic stay
Once accepted, creditor enforcement pauses.
- 4
Build the plan and negotiate
Design a payment schedule creditors accept and the business can actually run on.
- 5
Perform the plan and report
Track performance and report to the plan administrator and the court on schedule.
In depth
Bankruptcy & Business Rehabilitation: what foreign clients need to know
A business short of cash has options beyond being sued creditor by creditor. Thai law allows a rehabilitation petition that suspends debt service temporarily and restructures the company under a plan creditors vote to accept. Conversely, a creditor convinced the debtor cannot recover uses the bankruptcy route to pool assets and distribute them methodically. Choosing the wrong road at the start costs both time and bargaining power.
Entry thresholds, and what the acceptance order does
A rehabilitation petition must show the company is insolvent or unable to service matured debt, and that there are proper grounds and a genuine route back — not merely a wish to escape creditors. The court weighs the business plan, projected cash flow, and the credibility of the proposed planner.
The decisive effect of the acceptance order is the automatic stay: new suits, enforcement, and pending seizures all halt. That window is management's only chance to breathe and marshal every creditor onto one platform instead of firefighting them one at a time.
Building a plan creditors will actually accept
Plans that pass a vote usually share four elements: creditor classes grouped by the nature of their rights, differentiated repayment rates and periods per class, new money or asset sales to restore liquidity, and a compliance mechanism with clear default consequences. Every figure needs a stated assumption behind it, not a hopeful estimate.
We work alongside our own accounting team so the plan's numbers reconcile with the actual statements and tax exposure. Creditors scrutinise revenue projections and any item benefiting existing shareholders hardest; if those two cannot be explained, the plan usually dies at the creditors' meeting.
For creditors: when a bankruptcy petition is the right move
A bankruptcy petition suits cases where nothing viable remains, or where assets are being shuffled out, because once absolute receivership is ordered, control passes immediately to the official receiver and earlier transfers that prejudiced creditors can be unwound.
Before filing we test two things: whether the claim meets the statutory threshold, and whether enough assets will realistically enter the pool to produce a dividend. A creditor who files into an empty estate spends money for nothing.
Cost structure: government fees vs professional fees
| Item | Official fee | Professional fee | Note |
|---|---|---|---|
| Filing the rehabilitation petition | Court and publication fees at Central Bankruptcy Court rates | THB 120,000–350,000 by debt size and creditor count | Includes drafting, exhibits, and the acceptance hearing |
| Preparing the plan and running creditor meetings | Meeting and notice costs as set by the officer | THB 150,000–450,000 | Done with our accounting team so cash-flow projections tie to the real statements |
| Lodging a creditor's proof of claim | Filing fee at the set rate | THB 20,000–45,000 per creditor | The deadline from publication is strict; late filing forfeits the dividend |
| Filing a creditor's bankruptcy action | Court fees plus the cost deposit the court requires | THB 80,000–200,000 | We first assess whether the estate will yield an actual dividend |
A contract manufacturer whose line stopped after its accounts were frozen
Situation: Three creditors enforced simultaneously, leaving no working capital for materials.
What we did: We petitioned for rehabilitation, pointing to a real backlog of unfilled orders as the cash source.
Outcome: The petition was accepted, enforcement stopped, the plan passed, and the line restarted within a quarter.
A trade creditor who found assets leaving before the shutdown
Situation: The debtor announced closure, yet machinery had moved to a company with the same shareholders.
What we did: We filed for bankruptcy and put the transfer facts before the official receiver.
Outcome: The assets returned to the estate and our client received a dividend in the creditor ranking.
When to act, and when waiting is fine
Petition for rehabilitation before the operating account is frozen
A business still circulating cash carries far more weight in a plan than one already stopped.
Wait if you can still restructure directly with the main creditors
An out-of-court deal is cheaper and does not shake supplier confidence.
Creditors should file for bankruptcy once assets start moving
The power to unwind transfers here is broader than in an ordinary debt claim.
Do not file into an estate with no assets
We will say so plainly and offer alternatives, such as negotiating a part payment.
FAQ
Frequently asked questions
How much debt supports a bankruptcy petition?
At least THB 1M for an individual and THB 2M for a company, and the debt must be ascertainable.
Can creditors still seize assets in rehabilitation?
Not during the stay — they must lodge claims inside the process instead.
Are directors personally liable?
Generally no, unless they gave guarantees or acted in bad faith or in breach of duty.
Does a late claim lose the right?
Yes — the two-month window from publication is strict, so notices must be monitored.
When is a bankrupt discharged?
Normally by operation of law after the statutory period, absent grounds to extend it.
Is buying assets out of bankruptcy safe?
Safer than buying from the debtor directly since the official receiver sells, but existing encumbrances still need checking.
After a rehabilitation petition, can existing management stay on?
Often yes, depending on the planner the court appoints and the terms creditors approve.
Does the stay cover tax debt?
It reaches enforcement in many cases, but the claim must be lodged correctly; we check each one.
How many years does rehabilitation run?
From filing to plan approval usually takes 8–14 months; performing the plan may run 3–5 years.
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Written by: Thai Law & Accounting Services — attorneys and licensed accountants
Reviewed by: Reviewed by a Notarial Services Attorney registered with the Lawyers Council of Thailand.
Last updated: 2026-08
Information as of August 2026. Government fees and processing times change — verify with the relevant agency before acting, or let our team verify for you.